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EXEMPTION u/s 54 of Income Tax Act regarding sale and purchase of residential property

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This query is : Resolved

Caanchal Rastogi (Querist)

11 April 2023 A person is going to purchase a plot on which he will construct a residential house for self use. It will be constructed within period of 3 years. On other hand, he has agreed to sale his share in parental house to his brother. But it will be happened in future may be before or after one year of purchase of land. whether he will be entitle for exemption u/s 54

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

11 April 2023 Exemption under sec. 54 IT act, can be claimed by construction of house property within one year before to 3 years after the sell of a HP. So, if you purchase the land within 12 months before the sell of your inherited property, you will be eligible u/s. 54 of IT act, provided you construct HP over it within specified time limit.

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